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Hay & Forage report for Sept. 6
Friday, Sept. 6
Compared to last week: Trade and demand on hay continues to be slow with not many price changes since buyers and sellers are playing a waiting game to see who adjusts their prices first. Buyers are bidding lower prices but sellers have been reluctant to accept lower bids and are not convinced yet that the market is going lower.
High quality Alfalfa seems to be priced firmly and holding its own but other types of hays tend to be getting just a little weaker. The rains that occurred more than a month ago did considerable damage to alfalfa hay that was already cut along with sprouting a large variety of fast growing weeds which have reduced the quality of the remainder of the hay crops to be harvested in some areas. Those happenings along with the fact that the late freeze last spring, damaged the first cutting of alfalfa which reduced the available supply of top quality alfalfa hay and was part of the reason why the high quality dairy type alfalfa has stayed firmly priced.
It appears that many feedlots have switched from hay (particularly alfalfa) to other types of roughage products the last few years which has lessened the demand for some types of hay. Also earlier this summer after some of the wheat crop had seen abandonment and/or insurance adjustments much of that ground was put into fast growing Sudan/Sorghum type hay crops which had received very timely rains in several areas. This tremendous increase in hay acreage has led to increased offerings of these types of products in recent weeks which have put pressure on the hay market in general.
However, recent hot dry conditions will no doubt reduce the tonnage of unharvested hay and impact prices also, which has brought us to the current standoff between buyers and sellers. In conclusion, there are not many if any noticeable changes in the prices for this week, since the market was predominately steady due to the previously mentioned factors.
Prices for hay and pellets quoted per ton except where noted.
North, Central, & East Texas
Alfalfa: Small Bales: Delivered: Premium to Supreme $13-$14 per bale; FOB: Good $7 per bale.
Alfalfa: Small Bales: FOB: $10-$11. Large Squares: Delivered: Premium to Supreme $275-$300; Good to Premium $250-$275.
Coastal Bermuda: Small Squares: FOB: Good to Premium $230-$265, $6-$8 per bale; Fair to Good $5-$6 per bale.
Large Rounds: FOB: Good to Premium $50-$80; $120-$170 per ton; Good $40-$50 per roll, $80-$120 per ton.
South Texas Hay Report
Coastal Bermuda: Small squares: FOB: Good to Premium $230-$265, $7-$8 per bale; Fair to Good $165-$230, $5-$7 per bale.
Large rounds: FOB and delivered locally: Good to Premium $100-$160; $50-$80 per roll.
The Texas Department of Agriculture has Hay and Grazing Hot Line set up for buyers and sellers looking for hay or grazing; the number is 1-877-429-1998. The website for the hotline is: www.TexasAgriculture.gov/hayhotline.
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